I need a 12VDC voltage regulator that can produce at least 3A. My DC Source is 18.5volts 3.5A. I'm powering gsm shield, arduino, solenoids and etc. I only have here two LM317 regulator and their max current is only 1.5a based on the datasheet. The electronic shop near me doesn't have regulator that can produce more than or equal to 3A. My circuit has a master switch and backup battery that will turn on when the main supply is off. This is the schematic if i will use two regulators with master switch and back up, it is very complicated, and i want to reduce it as shown in the left of the picture by using only one regulator.

Question - Why do you think you need a 3A regulated supply ? What is your actual load ? Just because the power supply can provide 3A+ doesn't mean your regulator has to be rated at that figure. If 6 volts meets you back-up needs than "losing" 12.5 across a linear regulator is a shear waste of power (12.5 x 3 = 37.5 watts). If you really need 6 or 12 volts (you seem to be a bit mixed on voltages) then I'd suggest a switched mode regulator that offers over 90% efficiency with very little heat.

Question - Why do you think you need a 3A regulated supply ? What is your actual load ? Just because the power supply can provide 3A+ doesn't mean your regulator has to be rated at that figure. If 6 volts meets you back-up needs than "losing" 12.5 across a linear regulator is a shear waste of power (12.5 x 3 = 37.5 watts). If you really need 6 or 12 volts (you seem to be a bit mixed on voltages) then I'd suggest a switched mode regulator that offers over 90% efficiency with very little heat.

I have a solenoid lock,alarm,relay rated at 12v. A couple of 5 inputs to arduino. The gsm shield required is 1.5A. Assuming the arduino is 500mA, gsm is 1.5A, the solenoid lock is 200mA, alarm is 300mA, relay is 50mA then the total is 2550mA or 2.5A. The remaining 500ma is just for extra. The purpose of the back up battery is not to power them all but to only power the arduino and gsm, so that the gsm can still send message and call.